PG&E reports $3.36 billion loss for 2000


By the OGJ Online Staff

HOUSTON, Apr. 17, 2001—Reflecting the turmoil in the California electricity markets, PG&E Corp. Monday reported a 2000 net loss of $3.36 billion, the result of an aftertax charge of $4.1 billion related to costs from the state energy crisis.

The California utility holding company reported a net loss of $73 million in 1999, reflecting losses from discontinued operations. Revenue in 2000 rose to $26.23 billion, a 26% increase over the $20.82 billion reported in 1999.

Pacific Gas & Electric Co., the utility unit of PG&E, filed for bankruptcy protection Apr. 6 in a San Francisco federal court. Neither PG&E Corp. nor any of its other units were affected by Chapter 11 bankruptcy protection filing.

The utility unit accrued billions of dollars in wholesale power costs that it could not pass on to customers under a state freeze on retail rates. Most power suppliers have yet to be paid. Pacific Gas & Electric has a lawsuit pending against the California Public Utilities Commission seeking full recovery of the costs through an increase in retail rates.

Company executives had warned they were expecting the company to take the write off, which on a pretax basis amounted to $6.94 billion. PG&E Chairman Robert D. Glynn Jr. said taking the charge doesn't diminish the company's conviction its utility is entitled under law to recover these costs. If the costs are deemed recoverable, he said, the utility could reestablish these assets and recognize income in the future.

Not counting the charge and other nonrecurring items, PG&E said 2000 earnings from operations were $925 million, or $2.54/share, compared to $826 million, or $2.24/share in 1999.

In the 2000 fourth quarter, PG&E Corp. reported a net loss of $4.12 billion, compared to net loss of $611 million in the comparable 1999 period. Revenue for the 2000 quarter rose 68% to $8.08 billion, up from $4.8 billion in 1999.

The company's unregulated National Energy Group (NEG) contributed a sizable percentage of gains for the year and the quarter. Earnings from operations were $162 million, or 45 cents/diluted share, on revenues of $16.6 billion for 2000, compared with $63 million, or 17 cents/share, on revenues of $11.6 billion in 1999.

PG&E also said it and the utility continue to pursue multiple avenues for managing and resolving the California energy crisis, including legal action, negotiations with regulators and elected officials, and discussions with lenders and creditors.

Sponsored by FLSmidth

Related Articles

Eos Energy Storage receives $2.1Mn from California Energy Commission for battery demo

As part of California’s Electric Program Investment Charge (EPIC), through the California Energy Commission (CEC), Eos Energy Storage was awarded $2.1 million for an advanced battery storage system demonstration.

Mojave solar power plant enters operations in California

Abengoa Yield announced that the 280-MW Mojave solar power plant, located in California, entered commercial operation on December 1.

Follow Power Engineering on Twitter

Latest News

 MS Power coal-to-gas conversion nearly complete

MS Power coal-to-gas conversion nearly complete

A coal-to-gas conversion project at a power plant operated by Mississippi Power is nearly com...
 North Anna nuclear power plant shuts down

North Anna nuclear power plant shuts down

Unit 1 of the North Anna nuclear power plant automatically tripped offline Feb. 26 as workers...
 Oklahoma leaders looking for more wind regulations

Oklahoma leaders looking for more wind regulations

With wind energy production in full swing in Oklahoma, legislative leaders are looking to imp...

Second-oldest nuclear reactor in S. Korea OK to restart

South Korea’s nuclear watchdog approved a plan to restart a 679-MW nuclear power unit that wa...
 SunEdison to bring power to 20Mn people by 2020

Video: SunEdison to bring power to 20Mn people by 2020

SunEdison, Inc. (NYSE: SUNE) announced plans to bring electricity to 20 million people in und...
02-25 Henry Hub Average Natural Gas Spot Prices

02/25 Henry Hub Average Natural Gas Spot Prices

The Henry Hub is the pricing point for natural gas futures contracts traded on the New York M...
 GDF Suez wants Areva to deliver nuclear reactors, wind turbines

GDF Suez wants Areva to deliver nuclear reactors, wind turbines

GDF Suez says it received guarantees from Areva for planned nuclear reactors in Turkey and wi...
 CB&I: We’re not liable for $247mn nuclear power project penalties

CB&I: We’re not liable for $247mn nuclear power project penalties

Chicago Bridge & Iron (CB&I, NYSE: CBI) say they should not be liable for any of the ...

Power Engineering Current Issue

03/01/2014
Volume 118, Issue 3
1403PE-cover

Products Showcase

Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013

Power Industry Wire News

Intergraph(R) CADWorx & Analysis University Express in India During March to Include Sessions on Designing Plants and Offshore Facilities

Intergraph(R) CADWorx & Analysis University Express in India During March to Include Se...

What's Coming to the Energy Sector in 2015?

What's Coming to the Energy Sector in 2015?

SL Series Is Tinius Olsen's New Generation of Hydraulic Universal Testing Machines

SL Series Is Tinius Olsen's New Generation of Hydraulic Universal Testing Machines

Manitok Energy Inc.'s CEO Mass Geremia Interviewed by The Energy Report

Manitok Energy Inc.'s CEO Mass Geremia Interviewed by The Energy Report

UGE International Ltd. Announces Private Placement

UGE International Ltd. Announces Private Placement

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>